I am really confused with following questions (related to Inventory counting)
Any advise will be really appreciated.!!!
Thanks
Q1.
On 12/31, Auditor performed test counts and result was as following
Book Qts, Actual counting.
1000 800
new inventories were ordered as F.O.B Shipping point, Auditor realized that this client purchased new inventories.
This new purchased inventories were shipped before 12/31 but arrived to client warehouse after 12/31.
Invoice was also received and recorded accordingly after 12/31.
Adjustment
No Adjustment required.. I guess???
Q2.
On 12/31, Auditor performed test counts and result was as following
Book Qts, Actual counting.
2000 2000
New inventory were ordered as F.O.B Shipping point, Auditor realized that this client purchased new inventory.
This new purchased inventory was shipped before 21/31 but arrived to client warehouse after 12/31.
Invoice was received and recorded accordingly BEFORE 12/31.
Adjustment
Inv / Account Payable ????
Thank you